Offbeat Americans' household debt edges up to $13.21 trillion

18:32  17 may  2018
18:32  17 may  2018 Source:   reuters.com

Consumer debt set to reach record $4 trillion by the end of the year

  Consumer debt set to reach record $4 trillion by the end of the year American consumers are spending about 10 percent of their incomes every month paying non-mortgage related debts. Experts weigh in on how you make sure you aren't overleveraged.Load Error

The massive debt hangover: U.S. household debt climbs to a record $ 13 .15 trillion . Updated Mar 21, 2018 • 3 min read. One important factor to look at is how Americans are keeping up with their debt payments.

U.S. Producer Prices Edge Up 0.1%. Outstanding household debt rose by 3 billion to $ 13 .15 trillion in the final three months of 2017, completing the fifth straight year overall balances increased, the Federal Reserve Bank of New York said Tuesday.

U.S. household debt grew by $63 billion, or 0.5 percent, to $13.21 trillion in the first quarter, driven largely by the increase in mortgage balances, a New York Federal Reserve quarterly report released Thursday showed.

The amount of mortgage balances rose by $57 billion in the first three months of 2018 to $8.94 trillion. Families, however, paid down their home equity loans, which fell by $8 billion to $436 billion, according to the report.

"Although household debt has been growing for five years, its growth has been slow relative to earlier periods, as mortgage debt has continued to be relatively flat," N.Y. Fed analysts wrote about the report's findings.

Millennials are playing catch-up with Gen X on wealth

  Millennials are playing catch-up with Gen X on wealth Weighed down by student debt, millennials are in worse shape financially than Gen Xers were at same ageLoad Error

Student loan debt also plays an outsized role in total American household debt , coming in second behind mortgage debt . As of the second quarter of 2017, student loan debt stood at a whopping .34 trillion , divided By facing up to how much debt you have, you can take the first steps to get rid of it.

The net worth of American households grew last year by .8 trillion , or 14%, to .66 trillion , according to the Federal Reserve. As a percentage of GDP, total debt edged up to 246% from 245%.

Overall tight lending standards have likely contributed to the modest increase in mortgage debt, they said.

Meanwhile, the U.S. housing sector has continued to its recovery since the global credit crisis a decade ago, according to N.Y. Fed analysts.

However, the housing recovery and its impact have been uneven across age groups and between homeowners and renters, they noted.

"In particular, the factors that determine housing wealth are not evenly spread across the population, and those relationships have changed since the pre-financial crisis housing boom," N.Y. Fed's director of research Beverly Hirtle said in prepared remarks on the quarterly report.

The Great Recession Has Created a New 'Lost Generation’ .
According to a study by the St. Louis Federal Reserve Bank, young American families have recovered least from the effects of the Great Recession and are at risk of becomingIn an interesting new paper from the Federal Reserve Bank of St. Louis, researchers identify a new "lost generation" only this time the term refers to wealth lost following the Great Recession and how each generation has recovered from it so far.

Source: http://us.pressfrom.com/news/offbeat/-145777-americans-household-debt-edges-up-to-13-21-trillion/

—   Share news in the SOC. Networks
This is interesting!